SAIC, Inc. (SAI), Bazaarvoice Inc (BV), VeriFone Systems Inc (PAY), Hovnanian Enterprises, Inc. (HOV), Ciena Corporation (CIEN): 5 Reasons to Worry About Next Week

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The economy is showing signs of fumbling the recovery.

For starters, are you feeling the frothiness in the housing market? This week’s S&P/Case-Shiller report showed that home prices in March posted their largest year-over-year gain since 2006. Does anyone remember what happened in the housing market after 2006’s frenzied pace of house flipping?

The news isn’t just iffy on the macro level. There are also more than a few companies that aren’t pulling their own weight in this supposed economic recovery.

There are still plenty of names posting lower earnings than they did a year ago. Let’s go over a few of the companies that are expected to go the wrong way on the bottom line next week.

Company Latest Quarter EPS (estimated) Year-Ago Quarter EPS
SAIC (NYSE:SAI) $0.26 $0.35
Bazaarvoice (NASDAQ:BV) ($0.13) ($0.08)
VeriFone (NYSE:PAY) $0.47 $0.64
Hovnanian (NYSE:HOV) ($0.05) $0.02
Ciena (NASDAQ:CIEN) ($0.01) $0.04

Source: Thomson Reuters.

SAIC, Inc. (SAI)Clearing the table
Let’s start at the top with SAIC, Inc. (NYSE:SAI). Being a government services contractor isn’t easy these days. Forget about the sequestration. There was a mandate to curb spending long before the automatic cuts kicked in. Analysts see SAIC, Inc. (NYSE:SAI)’s revenue taking a 7% hit when it reports on Monday, and earnings are expected to take an even bigger drop.

Bazaarvoice Inc (NASDAQ:BV) isn’t what you sound like after inhaling a blast of helium. This is actually a company that helps clients leverage social online data into actionable improvements. Bazaarvoice Inc (NASDAQ:BV) is also a busted IPO. The fast-growing but profitless company went public at $12 last year. The good news is that Bazaarvoice Inc (NASDAQ:BV) has posted narrower-than-expected deficits in every quarter since going public. The bad news is that it’s still posting those deficits, and — for now — Wall Street sees the red ink growing.

VeriFone Systems Inc (NYSE:PAY) provides electronic payment solutions, but it’s been having problems getting paid these days. The stock took a hit earlier this year when it blamed order delays and setbacks in certain geographic regions for soft results.

The pros aren’t betting on an easy recovery at VeriFone Systems Inc (NYSE:PAY). They see revenue sliding by 8% when it reports on Wednesday with earnings taking a more pronounced 27% hit.


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